'Shark Tank' judge Mark Cuban calls a woman 'gold digger.' Richard Branson was having none of it.
"Shark Tank" is known for inspiring business ideas, hilarious pitches, and light-hearted banter between founders and investors, but that only lasts till the sharks start scrutinizing business models and profit margins, which can often lead to tough questions and harsh criticism. Back in season nine, one of the most popular Sharks on the panel, Mark Cuban sparked controversy when it referred to Yunha Kim, the founder of Simple Habit, as a "gold digger". While the remark went viral after the episode was aired, it also led to a very chaotic exchange between the Sharks.
In the episode, Kim pitched her app called Simple Habit to the Sharks with an ask of $600,000 for a 5% stake in the business. The app helps users create a habit of meditating as they can get a customized meditation plan by answering a few simple questions. On the show, Kim explained that they launched the app in December 2016, out of the tech startup accelerator Y Combinator. She shared that her team had raised more than $2.5 million in investments from various investors. While it was a great achievement for the company, the sharks weren't amused.
After learning about the $2.3 million investment, sharks, Cuban in particular, were unsure why Kim was on the show. She explained that the company was already partnering with celebrities and influencers, and the sharks would provide great value with their planned business strategy.
This is Cuban where lost it and said, "I am so out!" He felt that Kim wasn't interested in making a deal and was using the platform to get exposure. “You’re a gold digger,” he told Kim.
Branson immediately disagreed saying that she has done a great job and the show is for all kinds of entrepreneurs. However, Daymond John backed Cuban accusing Kim of taking up the time of other entrepreneurs who have put their homes at stake and have no other place to go. Cuban later tried to backtrack saying “It wasn’t a personal issue. It was more about coming here, not really wanting a deal, but looking to get the commercial.” Robert Herjavec wasn't convinced as he said it seemed very personal.
“I think it’s so disrespectful to say you’ve done a great job of raising money that you don’t deserve to be here. Anybody that can make it here deserves to be here, so welcome to the shark tank," Herjavec added.
Along with John and Cuban, Lori also backed out citing similar concerns. However, Branson continued to disagree with the sentiment, calling Cuban and John "extremely rude." The heated exchange ended with Branson and Cuban tossing a glass of water at each other.
Finally, Herjavac who felt that Kim had value to offer, floated a deal. He offered to give $300,000 for 10% if Richard would match it for a total of $600,000 for 20%.
Branson who initially offered $300,000 for 10%, agreed to go in with Hervajec.
However, Kim felt that she had an obligation to be fair to the other investors, so she countered with an offer of $600,000 for 6%. While the two Sharks came back with $600,000 for 15%, Kim declined the offer and walked out with no deal.
According to Looper, after the appearance on Shark Tank, Simple Habit grew rapidly and got 75,000 new downloads on the night of the broadcast, which grew to 1 million by the end of the year.
By 2020, the app had more than 7 million users and the company was ultimately sold to Ingenio, a spiritual wellness marketplace in 2023.
